New York’s newest ban on non-compete agreements is expected to have a significant impact on businesses and workers in the state, is part of a larger national movement, and may influence that movement positively. The ban, which is awaiting Governor Kathy Hochul’s signature, would prohibit almost all non-compete agreements for workers, regardless of their salary level or job function.
The ban is likely to have the following effects:
- Increase employee mobility: Workers will be free to move to new jobs without fear of being bound by a non-compete agreement. This could lead to increased competition in the job market and higher wages for workers.
- Boost innovation: Startups and other businesses will be able to attract and retain top talent without having to worry about non-compete agreements. This could lead to more innovation and economic growth in the state.
- Reduce legal costs: Businesses will no longer have to spend time and money defending non-compete agreements in court. This could save them millions of dollars each year.
- Businesses will also not feel they must pursue past employees as well, who choose to work in the same field. This will limit legal actions to those situations with most egregious facts, such as theft of company secrets.
The ban is not without its critics. Some businesses argue that it will make it more difficult to protect trade secrets and confidential information. Others argue that it will give workers too much power and make it harder for businesses to compete.
However, the supporters of the ban argue that the benefits outweigh the costs. They believe that the ban will ultimately lead to a more competitive and innovative economy in New York.
The ban is expected to take effect 30 days after it is signed into law.
This gives the trend nationally toward elimination of non-competes more legs. Laws in New York tend to become laws in more states. This is because New York is a large and populous state with a diverse economy and population, with a very active district court, as well as an economic hub. As a result, New York often serves as a testing ground for new laws and policies. If a law or policy is successful in New York, it is more likely to be adopted by other states.
For example, the New York State Paid Family Leave Act, which was passed in 2016, has been adopted by several other states. The law provides employees with up to 12 weeks of paid leave to care for a new child, a sick family member, or their own serious health condition. The law has been credited with helping to boost the economy and improve the health of workers and their families.
Of course, not all laws that are passed in New York are adopted by other states. Some laws are too specific to New York’s unique circumstances, while others are simply not popular with other states. However, the laws that are successful in New York often serve as a model for other states, and they can have a significant impact on the way that people live and work across the country.
Here are some examples of laws that were passed in New York and later adopted by other states:
- The Clean Indoor Air Act: This law bans smoking in most public places, including restaurants, bars, and workplaces. It was passed in New York in 2003 and has since been adopted by over 20 other states.
- The Paid Family Leave Act: This law provides employees with up to 12 weeks of paid leave to care for a new child, a sick family member, or their own serious health condition. It was passed in New York in 2016 and has since been adopted by several other states.
- The Marriage Equality Act: This law legalized same-sex marriage in New York in 2011. It has since been adopted by over 30 other states.
These are just a few examples of the many laws that have been passed in New York and later adopted by other states. These laws have had a significant impact on the way that people live and work across the country, and they show that New York is often a leader in social and economic policy.
If your employment and independent contractor agreements need to be updated to comply with Colorado’s own restrictions on non-competes, come to www.mcmechanlaw.com for a free consultation.